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Vancouver, BC (July 30, 2001):
After a long absence as a serious player on the
world economic stage, British Columbia reopens
for business. The Minister of Finance, Mr. Gary
Collins, introduced measures aimed at business
and individuals to help stimulate the stagnant
British Columbia economy.
In addition to the personal income tax cuts announced
on June 6, 2001, (see separate newsletter) the
highlights of the new measures are:
- Reducing the general corporate tax rate by
3% to 13.5% as of January 01, 2002.
- Exempting from sales tax, commencing July
31, 2001, production machinery and equipment
purchased by eligible businesses and manufacturers
engaged in logging, mining and energy sectors.
- Introducing a new 20% flow-through share
tax credit to encourage mineral explorations.
- Eliminating the corporate capital tax on non-financial
institutions by September 01, 2002. As an interim
step, this rate drops from the current 0.3%
to 0.15% on September 01, 2001.
- Removing the 7% tax on bunker fuel as of July
31, 2001.
- Reducing the tax on domestic jet fuel from
5 cents to 2 cents per litre as of August 01,
2001. The tax on aviation fuel also drops from
3 cents to 2 cents per litre.
- Increasing the sales tax rebates on alternative
fuel vehicles and buses. The increase is from
$500 to $1,000 for vehicles and from $5,000
to $10,000 for buses.
- Increasing the passenger vehicle surtax threshold
from $32,000 to $47,000 for both business and
individual purchases commencing July 31, 2001.
The package of measures places British Columbia
into a more competitive arena. It's a very positive
step and sends a signal to the world that we are
seeking a slice of the available commerce.
We'll endure some pain and uncertainty in the
short term, seeking instead the longer-term economic
rewards. Not only is personal investing a marathon,
but also the prospects of the province's businesses.
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